Cost of Buying | Tax
The Newly Built Home PTT Exemption
Every home in this market is newly built, which makes this the most widely applicable tax exemption on the site and the one with the sharpest edge.
The short answer
A newly built home is fully exempt from property transfer tax at or below a threshold, with the exemption reducing proportionally in a narrow band above it and disappearing entirely past that. You must occupy it as your primary residence within a set period and stay for the first year.
What you pay on a $1,099,000 newly built home
| List price | $1,099,000 |
|---|---|
| GST at 5% Normally added on top. A rebate may reduce it on qualifying purchases. | $54,950 |
| Property transfer tax Fully exempt: the newly built home exemption applies at or below $1,100,000. | $0 |
| Before legal fees and adjustments | $1,153,950 |
Legal fees, title insurance, and closing adjustments are extra. Rebate eligibility depends on your circumstances, so confirm it with the Canada Revenue Agency or your lawyer before relying on it.
What it removes
The whole property transfer tax bill, if you are at or below the full-exemption threshold. On a purchase near that threshold the amount avoided runs to five figures, which is real money and worth structuring a search around.
The current thresholds are on the Government of BC page linked below. They are set by legislation and change on a budget cycle rather than with the market, so check the source rather than relying on a figure remembered from last year.
The cliff
Above the full threshold the exemption reduces proportionally across a narrow band, then stops entirely. That means two homes a modest distance apart on price can differ by the entire tax bill.
If you are shopping near that line, it is worth knowing exactly where it sits before you negotiate upward. A price increase of a few tens of thousands can cost considerably more than it appears to.
The conditions
You have to move in within a set number of days of registration and keep it as your principal residence for the first year. There is also a limit on the size of the parcel.
This is an exemption for people buying a home to live in. It is not available for an investment purchase, and the occupancy condition is not a formality.
Is this right for you
Works well if
- ✓ You are buying a newly built home to live in
- ✓ Your price sits at or below the full exemption threshold
- ✓ You can meet the occupancy requirement
Does not work if
- ✕ You are buying to rent out rather than to occupy
- ✕ Your price sits above the phase-out band
- ✕ You cannot move in within the required period
Check before you offer
- → The current thresholds on the Government of BC page, since they change by legislation
- → That the home qualifies as newly built for the exemption's purposes
- → That you can meet the occupancy timing
- → Whether the first-time buyers' exemption would serve you better if you qualify for both
Read next
Common questions
What is the newly built home exemption?
A BC property transfer tax exemption for a newly built home bought as a principal residence. It removes the tax entirely at or below a threshold, reduces proportionally in a narrow band above it, and stops past that. Current thresholds are on the Government of BC page.
Do I have to live in the home?
Yes. You must move in within a set period after registration and keep it as your principal residence for the first year. It is not available for an investment purchase.
What if I am slightly over the threshold?
The exemption reduces proportionally across a narrow band and then stops. Being modestly over can cost you a substantial share of the tax, which is worth knowing before you negotiate a price upward.
Can I use this and the first-time buyers' exemption?
They are separate routes with different thresholds. If you qualify for both, you use whichever helps more. Your lawyer will apply the right one at closing.
Where these figures come from
- Government of BC, newly built home PTT exemption
Full exemption at $1,100,000 or less, partial to $1,150,000. Effective 1 April 2024.
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- Government of BC, property transfer tax rates
1% to $200,000, 2% to $2M, 3% above $2M, plus a further 2% on residential value above $3M.
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- Government of BC, first time home buyers' PTT exemption
Full exemption at $835,000 or less, partial to $860,000. Effective 1 April 2024.
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Work the numbers on a real home
Every figure here comes from government sources and from listings you can open. Search the market and check the costs against a specific price rather than a hypothetical one.